AUD/JPY consolidates close to 50DMA just under 83.00, but on the cusp of a bullish technical breakout?

  • AUD/JPY saw subdued trade amid a lack of Australia/Japan-related fundamental developments and remains close to its 50DMA at 82.94.
  • The pair may be on the cusp of breaking to the north of a medium-term bearish trend channel.

AUD/JPY spent most of Wednesday’s trading session consolidating close to its 50-day moving average, which currently resides just to the south of the 83.00 level and trading well within recent ranges. In Asia Pacific trade, kneejerk weakness in NZD following a more dovish than expected RBNZ rate decision pulled the Aussie lower and dragged AUD/JPY as low as the 82.70s. The pair then gradually rebounded back to current levels around 83.00 where it looks set to end the session.

FX markets focus has been elsewhere, such as on the evolving European Covid-19 crisis, on a barrage of US data, Fed speak and the Fed minutes. That, combined with a lack of either Australia or Japan-related fundamental developments, meant it is not surprising to see AUD/JPY trade with a lack of conviction. That lack of conviction is likely to be the story of the rest of the week, with most US market participants now on holiday for Thanksgiving.

To the upside, the most immediate resistance for AUD/JPY is this week’s highs in the 83.20 area. To the downside, aside from Tuesday’s lows in the 82.60s, the next main area of support is last week’s low at 82.15 and then the early September high at almost bang on 82.00 just below it.

AUD/JPY breaking out of medium-term bear trend?

Looking at AUD/JPY over a longer time horizon, the pair may be showing some bullish signs that it is about to break out of a bearish trend channel that has been containing the price action since the start of November. A break to the north would signal a potential move towards the pair’s 21DMA and 15 November highs in the 84.00 area.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rebounds to 1.1350 on modest dollar weakness

EUR/USD regained its traction after declining toward 1.1320 during the European session and rose to 1.1350 area. The dollar's is facing modest selling pressure amid falling US Treasury bond yields and allowing the pair to continue to edge higher ahead of the weekend.


GBP/USD struggles to pull away from 10-day low set near 1.3550

GBP/USD fell toward 1.3550 on Friday and touched its weakest level in 10 days. Although the US Dollar Index stays in the negative territory in the early American session, the risk-averse market environment doesn't allow the pair to stage a convincing recovery.


Gold reclaims $1,840 amid falling US T-bond yields

Gold reversed its direction after testing $1,830 earlier in the day and turned positive on the day above $1,840. The benchmark 10-year US Treasury bond yield is losing more than 3% at 1.75%, fueling XAU/USD's rebound.

Gold News

BTC may capitulate to $30,000

Bitcoin price has dropped considerably over the last three weeks. The recent downswing has made things worse for BTC and hints that a steep correction could be on its way.

Read more

Will the Netflix stock price rebound?

Netflix stock edged down after better than expected Q4 results. Will the Netflix stock price rebound? Expectations of rising subscription and higher prices are bullish for Netflix stock price.

Read more